State, Citicorp grapple for Hilton Tobago

Acclaimed, US based, allbusiness.com has reported that the asking price for the resort stands at US$22 million.

Citicorp, holds a mortgage debenture of US $16,750, 000 on the hotel, in addition to all its assets and debts. Citicorp was named as the hotel’s trustee in January of 1998.

Khalid Hassanali, President of eTecK had previously reported that he was unaware of the sale but later acknowledged his awareness to Sunday Newsday. He explained that the major shareholder, Vanguard Hotel Limited (owned by eTecK), has amassed a large debt which eventually led to the move by Citicorp to sell under the terms of a trust deed.

“What happened is that Vanguard, which is owned by eTecK was unable to service the loan for about four years and as a result Citicorp has become worried. We are attempting to resolve the matter at present,” said Hassanali.

Citibank Director and Corporate Bank Head, Raymond Gatcliffe, was unavailable for comment and did not reply to several messages.

The Hilton Tobago venture reportedly began as a equal share partnership between Angostura Holdings Limited and Guardian Holdings Limited with the aim of developing the 750 acre Lowlands Estate. Guardian Holdings later reduced its share to 25 percent and Vanguard went on to acquire the majority holding. Representatives at Angostura Holdings gave no response to questions regarding the sale and Sunday Newsday was told by Guardian Holdings representatives that all executives were at a meeting in Jamaica until the weekend.

Citicorp has appointed Miami- based Hotel Investor Services (HIS) as the sole broker for the multi-million dollar sale. Thomas F O’Neil of HIS has placed an advertisement in several international publications saying that he has been, “instructed to effectuate a sale discretely with as much secrecy and confidentiality as is possible, but to widely market to the international investor community in order to obtain the best possible price.”

The advertisement goes on to state that information would only be given to those who sign a confidential agreement.

The 20 acres on which the resort sits has a lease period of 999 years with annual payments of approximately US$50,000. The resort, which boasts 198 guestrooms, three restaurants, two tennis courts and a PGA designed 18-hole championship golf course (not for sale), reportedly runs at a cost of more than $50 million a year and employs approximately 300 persons.

The receptionist at the front desk of the Hotel informed Sunday Newsday that she was unaware of any sale and that business was better than usual because of the popular Great Fete Weekend celebrations.